i put a offer for short sale house in saugas for 285000 against offer price of 290000, but its only four days

Asked by Amarjeet, Castaic, CA Thu Mar 26, 2009

and i learned that my bank cut my loan amount from 270000 to 190000 . now i cant buy a house even if my offer is accepted . so can i withdraw my offer . if yes how do i act. i already sent email to my agent who is not responding well. pl guide me

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Wed Feb 2, 2011
Hi Amarjeet,

Phone your agent and let her/he know what happened. There's no way of knowing they got your email as it might have gone to their spam folder. If you can't speak with your Realtor, leave a clear message that you have been approved for only $190,000. They can withdraw your offer.

Do you know all the facts on why your loan amount dropped? Income? Credit/FICO score? Employment history? Working with a top loan officer so you know all the facts is critical for your next transaction. Sometimes it can be as simple as correcting items on your credit so you get a higher FICO score.

Unfortunately $190,000 won't buy much in California. Call me at (661) 255-3335 so I can get your qualified for the home you want. Twelve years experience.

Cheryl Garner, Mortgage Expert
Fairview Mortgage Capital, Inc.
Email: cheryl@cherylgarner.com
Web Reference:  http://www.cherylgarner.com
0 votes
Dean Pessin, Agent, Valencia, CA
Thu Jun 3, 2010
Yes you can.. As long as you are within your contingencies you can always get out. If the bank is not willing to lend you enough money than your loan contingency will protect you. Just let your agent know and they should protect you. If not it sounds like you need a new agent who will look after you best interest and not theirs. If the offer has not been accepted than if you have not heard back from the agent your offer was probably not accepted.
0 votes
Scott Reiber, Agent, Valencia, CA
Wed Jul 22, 2009
This is all real good advice. I'm sure you have withdrawn your offer already but have you found a house yet?
0 votes
Dyanna, , California
Thu Mar 26, 2009
Amarjeet there is a simple solution to this, your agent can submit a withdrawal of offer. He/she has access to the form on our WinForms site, problem solved. Even if your offer was accepted you don't have to accept it after the third day (that is when the purchase contract should expire). You haven't submitted your deposit so you really aren't going to lose anything except the opportunity to own your dream home.

Now I don't feel that you should file a complaint against your agent because nothing in your question suggests that she/he has done anything wrong except not respond well and sometimes that happens. I am not agreeing with it, but we don't know the full story, it could be your agent is still new and doesn't understand customer service, but that is no reason to file a complaint against him/her as Bob has suggested.

In regards to your loan being cut down, I get the feeling that you have already been informed as to why that has happened. Banks are getting a little tighter and their guidelines are becoming increasingly rigid. I hope you find the home you are looking for and I am sure you will because the prices in your area are pretty fair for a good sized home.

Good Luck
0 votes
BOB Khalsa, Agent, Newhall, CA
Thu Mar 26, 2009
Hello Amarjeet:

As Shel-lee has mentioned it is important to find out the specific reason why the loan amount was lowered. If your previous loan approval for $270,000 was made by the bank after verifying your income and expenses, tax returns and credit report with FICO scores, there should be no reason for them to arbitrarily lower the approval unless the initial approval was only a preliminary one.

Your agent not responding is unusual. Please be aware that if your agent is a Realtor who is a member of the Association of Realtors, you have a recourse to file a complaint with the Grievance Committee of the Association. This is a simple process and is available at no cost. Prior to that do call the office and speak to the Agent's Broker. To find out who the Broker is, go to the Department of Real Estate web site at http://www2.dre.ca.gov/PublicASP/pplinfo.asp
and enter the agents last name,first name. On the Agent's License information page click on the highlighted license ID # against the employing broker. This will take you to the Office page which in most cases will have the word "Corporation" at the top. Against the item "Licensed Officer" there will be a name as the "Designated Officer." This is the Broker. If there is more than one designated officer, take the very first name. This is the individual you should be speaking to.

If you need any help let me know.

Bob Khalsa
Broker Owner
United America Realty
0 votes
Shel-lee Dav…, Agent, Rolling Hills Estates, CA
Thu Mar 26, 2009

Sorry to hear that your bank has reduced your loan approval. It is really important that you ask your lender the reason for reducing the loan amount so you can proceed in your home buying quest with full information. If it has nothing to do with your income and qualifications then you can always shop around for a new lender. If is was based on your verifiable income and debt ratios then this, in a way, is a blessing. It will prevent you from being among the thousands who bought more home than they could afford and are unable to make the monthly payments.

Now to the other issues covered above.
1. An offer on a short sale is contigent on the seller's bank agreeing to take less than the full amount owed them. The offer should have included a C.A.R. form SSA that clearly states this contingency. Until the seller's lender agrees, you effectively have only a contingent offer.
2. All offers have other contingencies in them. One of those contingencies is the ability of the buyer to get the financing. Obviously, you cannot get the financing, so you cannot remove this contingency and effectively, you do not have a valid offer submitted.
3. Your agent works for you!!!! Too often agents are too focused on their next paycheck and not their client's well being. Your agent has a duty to YOU, the client, to follow YOUR instructions and protect YOUR interests. If your agent will not assist you in submitting a formal cancellation on your offer, then call your agent's broker. They should be willing and able to help you out. Your offer was effectively presented by the broker, not the specific agent you are working with and they need to know that your agent is not willing to help you cancel your offer.

Hope this helps and you are still able to find a home that you can afford, with comfortable payments and a 30 year fixed rate fully amortizing loan. Now is a great time to find these deals as housing prices remain affordable, inventory remains high and interest rates are at their lowest levels in history. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
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